The Delaware Form 329 is a tax form used to compute special taxes on lump sum distributions from qualified retirement plans. This form is applicable under specific circumstances, such as the participant's death, separation from employment, or reaching the age of 59 ½. Understanding the requirements and exclusions of this form is essential for accurate tax reporting.
The Delaware Form 329 is a crucial document for individuals receiving lump sum distributions from qualified retirement plans. It specifically addresses tax computations for such distributions, ensuring compliance with state tax regulations. The form is applicable to both employees and self-employed individuals, but under different conditions. For employees, it is relevant only when distributions occur due to death, separation from employment, or after reaching the age of 59 ½. Conversely, self-employed individuals can use this form when distributions are made due to death, reaching the age of 59 ½, or prior disability. Importantly, Form 329 does not apply to rolled-over distributions or early distributions that qualify for specific exclusions. The form requires detailed calculations, including the separation of capital gains and ordinary income portions of the distribution, and it mandates that individuals compute their taxable amounts accurately. To ensure proper filing, it is essential to attach Form 329 and any relevant documents to the appropriate state tax forms. Understanding the nuances of this form is vital for accurate tax reporting and compliance in Delaware.
DELAWARE
FORM 329
TAX YEAR
SPECIAL TAX COMPUTATION FOR LUMP SUM
DISTRIBUTION FROM QUALIFIED RETIREMENT PLAN
Lump Sum Distributions
This form applies, in the case of someone who is not self-employed, only when the distribution was made:
-Due to the participants death;
-Due to the participant's separation from employment; or -After the participant had attained age 59 1/2
In the case of a self-employed person, this form applies only when the distribution was made:
-After the participant had attained age 59 1/2 -The participant was previously disabled.
THIS FORM DOES NOT APPLY WHEN YOUR DISTRIBUTION WAS:
-Rolled over;
-An early distribution including an early distribution received for medical, education or housing exclusions; or -Subject to the early withdrawal penalty on Line 58 of your Federal Form 1040.
LAST NAME(S) AS SHOWN ON RETURN
YOUR FIRST NAME
YOUR SOCIAL SECURITY NUMBER
SPOUSE'S FIRST NAME (IF APPLICABLE)
SPOUSE'S SOCIAL SECURITY NUMBER (IF APPLICABLE)
1.Enter capital gain portion of distribution from Box 3 of Form 1099R...............................
2.Enter ordinary income portion of distribution from Box 2a of Form 1099R......................
3.Add Lines 1 and 2............................................................................................................
4.Death benefit exclusion allowed on Federal Form 4972..................................................
5.Subtract Line 4 from Line 3..............................................................................................
6.Current actuarial value of annuity (if applicable, see Federal instructions).....................
7.Total taxable amount of distribution. Add Lines 5 and 6.................................................
8.Enter 10% of Line 7 (Multiply Line 7 by .1)......................................................................
9.Compute the tax on Line 8 (use Tax Rate Schedule or Table for Form 200)..................
10.Multiply the amount on Line 9 by ten...............................................................................
11.Enter 10% of Line 6 (Multiply Line 6 by .1)......................................................................
12.Compute the tax on Line 11 (use Tax Rate Schedule or Table for Form 200)................
13.Multiply the amount on Line 12 by ten.............................................................................
14.Subtract Line 13 from Line 10..........................................................................................
15.Divide Line 2 by Line 3....................................................................................................
16.Tax on ordinary income portion of distribution (Multiply Line 14 by percentage on Line 15 and enter on Form 200-01, Line 7, or Form 400, Line 6)...........................................
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ATTACH FORM 329 AND FORM 4972 TO FORM 200 OR FORM 400
REVISED 10/2/03
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